I don't drink the Manual-Only Koolaid, so I still tell people that Auto aim has its uses. They're pretty specific, and yes, after you get up the scale far enough in gun range and your rate of fire drops far enough that every single shell has to count, you should be using manual.
When you're running picket duty for CVs or the gun line in a Frigate or DD (or even some of the smaller, faster CLs), and you're using a battery of shorter-range, faster-firing guns in the sub-5" range, several things are going on. You're moving very quickly, you're usually making drastic turns and maneuvering rapidly as you shoot, your target is moving very wildly in relation to you, and your guns cycle and track fast enough that if you simply cannot keep them firing at their max rate and track the target manually. Auto, used correctly, keeps the majority of your shells mostly on the target most of the time, and that's what you need. It also lets you switch to DCs or torps, aim, and fire quickly enough to keep up with your own ship's rapid maneuvering.
I switched to Manual when I moved up to my CL and my eight 2x6" fit. Neither the Atlanta or either of the remodels have the speed and maneuver to charge and dodge well enough for close-in work, so I tend to work the ends of the gun line and either die from BB5s that are flanking, or go after other CLs and DDs that are trying to slip into the rear. My old DD is still in the shipyard and when I take it out, unless I know ahead of time I'm going to be doing AA escort, I use Auto with it.
For anybody that believes Manual is the one and only way, I dare you to take a DDX or Fletcher with 2x5"/38s into GB2 or Blitz and keep your shells on target at your full rate of fire while you're jinking around enough to stay alive. It's just not going to happen.
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